2009 (4) TMI 760 - AT - Central Excise

Summary

Issues: Condonation of delay in filing appeal, waiver of pre-deposit of disputed amounts, stay of recovery till appeal disposal.

The judgment by the Appellate Tribunal CESTAT, BANGALORE involved an application for condonation of delay in filing an appeal before the Tribunal. Despite no representation from the applicant, the Tribunal considered the explanation provided for the delay, attributing it to the absence of the section head dealing with Central Excise matters and the busy schedule of the Managing Director and other officers due to work related to manufacturing railway wagons. The Tribunal, noting the applicant as a State Government Undertaking, accepted the explanation and condoned the delay, proceeding to take up the stay petition and the appeal on records.

Regarding the submissions made on the stay petition, the Tribunal observed that the demand of duty arose due to the non-payment of duty liability on waste, scrap, and materials generated during manufacturing, as well as the differential duty on the clearance of fabricated articles of iron and steel. Upon reviewing the records, the Tribunal found that the Commissioner (Appeals) had acknowledged the appellant's claim regarding the valuation of scrap and pontoons for duty determination and the calculation of differential duty based on cost data in CAS-4 as per Rule 8 of Valuation Rules 2000. The Tribunal concluded that the appellant had established a prima facie case for granting a waiver of pre-deposit of the disputed amounts, especially since similar issues had been decided in favor of the assessee in previous case laws. Consequently, the Tribunal allowed the stay application by waiving the pre-deposit of the disputed amounts and staying the recovery until the appeal's final disposal, ensuring that the stay order would remain in effect even after 180 days from the order date, with the appeal scheduled for hearing in due course.